NPV and IRR Benson Designs has prepared the following estimates for a long-term project it is considering. The initial investment is $84 comma 600, and the project is expected to yield after-tax cash inflows of $9 comma 000per year for 15years. The firm has a cost of capital of 13%.
a. Determine the net present value (NPV) for the project.
b. Determine the internal rate of return (IRR) for the project.
c. Would you recommend that the firm accept or reject the project?
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